US Stock Market Jumps On German "T-Bond" -- WSJ --September 9, 2019

Crazy. Data points from one WSJ article this morning. Again, this is from one article:

• U.S. stocks ticked higher after economic data from Europe came in better than forecast
• European government bond yields also rose across the board on expectations of a rate cut by the European Central Bank
• the Italian 10-year yield rose to 0.916% from 0.885% Friday. The German 10-year bund was yielding minus 0.606%, up from minus 0.634% at the end of last week

Okay. The US market gets excited when the German 10-year bond rises to a minus 0.606% yield from a minus 0.634% at the end of last week.

You have got to be kidding.

Two questions.

With German 10-year bond yield trending toward a minus 1% yield, exactly how far can the European Central Bank cut rates? LOL. And Trump blames the Chinese for currency manipulation. LOL.

Exactly what is the difference between 0.606% and 0.634%?

Remember, when calculating with "%" -- move the decimal over two places .... so ...

• $100,000 x 0.00606 = $606.
• $100,000 x 0.00634 = $634.

So, if you have $100,000 sitting around, you will pay Germany $28 less if you let them hold your cash for ten years. I guess that $28 is for each year; if so, we're talking a savings of $280. Your $100,000 will return you $99,720.

Of you can buy ATT (T) which pays almost 6%. Every year, with dividend increases likely and capital appreciation almost guaranteed (over ten years). $6,000 x 10 years = $60,000, and, of course, one can take that $6,000/year and re-invest.

Einstein: strongest force in the universe -- compound interest.

What am I missing?

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